Posted: 12/17/2014
CalPERS has joined State Controller John Chiang in supporting prefunded healthcare plans for California retirees to supplement future health care needs. Chiang, who is also a member of the CalPERS Board of Administration, issued a press release on 12/16/14 noting a $71.8 billion unfunded retiree healthcare liability for California.
Prefunding retiree healthcare is a fiscally prudent move to help close the unfunded liability gap in health care for the State’s retirees. CalPERS optional California Employers' Retiree Benefit Trust (CERBT) Fund is helping employers at all levels take a proactive step to ensure the long-term sustainability and security of health benefits for their retirees.
The fund has 439 participating employers, including the State of California, which contributes for (three) employee bargaining units that took the proactive step of agreeing to prefund health coverage for their members. The CERBT fund is currently valued at more than $4 billion and is currently the largest Other Post-Employment Benefits fund in the California.
View the CalPERS Press Release here with additional information links.
View the State Controller Chaing's Press Release.